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Phil Coombes, head of intermediary sales for the society, said the product offered a rate of 5.69 per cent for two years.

He said: “We are all well aware of the difficulties facing first-time buyers. They can often struggle to meet the full asking price or their current income is insufficient to support a full mortgage.

“This shared ownership product facilitates that first step and provides a starting point to staircase up to full home ownership as earning potential increases.”

Mr Coombes said the maximum loan-to-value was 75 per cent with a maximum borrower share of 95 per cent.

He added: “It is ideal for clients who have saved for a deposit but cannot buy a property in their own right.

“There is no doubt this product will prove attractive to those clients who are ready to make the first step into home ownership.”

Dan Clayden, director of Devon-based Clayden Associates, said: “Something needs to be done in regards to the mortgage market. It is pretty slow. There is a sense there is not as much demand for mortgages at the moment.”

“There is a general malaise because of the economy. This is causing people to hang fire. This may be because of the mortgage products that are available. Any innovation in this market has to be a good thing.”